CODX Straddle Strategy
CODX (Co-Diagnostics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Co-Diagnostics, Inc. operates as a molecular diagnostics company that develops, manufactures, and sells reagents used for diagnostic tests that function through the detection and/or analysis of nucleic acid molecules in the United States and internationally. The company offers Co-Dx PCR platform, a polymerase chain reaction testing to patients in point-of-care and at-home setting. It also provides PCR diagnostic tests for COVID-19, influenza, tuberculosis, hepatitis B and C, human papillomavirus, malaria, chikungunya, dengue, and the zika virus. In addition, the company offers three multiplexed tests to test mosquitos for the identification of diseases carried by the mosquitos; molecular tools for detection of infectious diseases, liquid biopsy for cancer screening, and agricultural applications; tests that identify genetic traits in plant and animal genomes; and portable diagnostic device designed to bring PCR to patients in point-of-care and at-home settings. The company was incorporated in 2013 and is based in Salt Lake City, Utah.
CODX (Co-Diagnostics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.7M, a beta of 2.88 versus the broader market, a 52-week range of 1.26-46.5, average daily share volume of 5.8M, a public-listing history dating back to 2017, approximately 115 full-time employees. These structural characteristics shape how CODX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.88 indicates CODX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a straddle on CODX?
A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration.
CODX snapshot
As of August 14, 2026, spot at $1.42, ATM IV 35.20%, IV rank 4.05%, expected move 10.09%. The straddle on CODX below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 7-day expiry.
Why this straddle structure on CODX specifically: CODX IV at 35.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a CODX straddle, with a market-implied 1-standard-deviation move of approximately 10.09% (roughly $0.14 on the underlying). The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CODX expiries trade a higher absolute premium for lower per-day decay. Position sizing on CODX should anchor to the underlying notional of $1.42 per share and to the trader's directional view on CODX stock.
CODX straddle setup
The CODX straddle below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With CODX at $1.42 on that close, the first option leg uses a $1.42 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CODX chain at a 7-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 CODX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $1.42 | N/A |
| Buy 1 | Put | $1.42 | N/A |
CODX straddle risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit.
CODX straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on CODX. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
When traders use straddle on CODX
Straddles on CODX are pure-volatility plays that profit from large moves in either direction; traders typically buy CODX straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
CODX thesis for this straddle
The market-implied 1-standard-deviation range for CODX extends from approximately $1.28 on the downside to $1.56 on the upside. A CODX long straddle is a pure-volatility play: it profits when the underlying moves far enough from the strike in either direction to overcome the combined call plus put debit, regardless of direction. Current CODX IV rank near 4.05% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on CODX at 35.20%. As a Healthcare name, CODX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CODX-specific events.
CODX straddle positions are structurally neutral / high-volatility (long premium); the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. CODX positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CODX alongside the broader basket even when CODX-specific fundamentals are unchanged. Always rebuild the position from current CODX chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on CODX?
- A straddle on CODX is the straddle strategy applied to CODX (stock). The strategy is structurally neutral / high-volatility (long premium): A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration. With CODX stock at $1.42 on the most recent close, the strikes shown on this page are snapped to the nearest listed CODX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are CODX straddle max profit and max loss calculated?
- Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit. For the CODX straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 35.20%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CODX straddle?
- The breakeven for the CODX straddle priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The CODX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.09%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on CODX?
- Straddles on CODX are pure-volatility plays that profit from large moves in either direction; traders typically buy CODX straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
- How does current CODX implied volatility affect this straddle?
- CODX ATM IV is at 35.20% with IV rank near 4.05%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.